Question

By making small purchases and paying the ______________ amount each month, a potential borrower shows a lender how they use credit wisely.

entire

minimum payment

late fee

interest

Answer 1

entire

Step-by-step explanation:

Lenders will always check a borrower's credit history before advancing credit to them. The lenders' main interest is to assess the risk involved in extending credit to a customer. A borrower with a history of late payments and defaulting on loans is considered high- risk and unsuitable for credit facilities.

Lenders prefer clients who are quick in debt repayments. They consider them a low-risk customer and highly unlikely to default on loans. Such customers will always have a low debt-to-income ratio.